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The Right Fit
Famous Footwear Fast Facts
Industry Footwear Retailer
Headquarters Madison, Wisconsin
Description Famous Footwear, a division of Brown Shoe Company and a top retailer of name-brand
shoes in the United States, has more than 800 stores and serves 120 million customers each
year.
Revenues $1.2 billion
Business Challenge Famous Footwear needed to find a more efficient and effective way to deliver a fresh and precise flow of new styles to each store. Additionally, the company realized that it had to capture and respond to the variation and diversity that is driven by demographics, climate and region.
Business Solutions • JDA®Allocation•JDA®AssortmentPlanning•JDA®EnterpriseKnowledgeBase•JDA®PerformanceAnalysis•JDA’sMerchandisingsolutions
Business Benefits• Enhancedenterprise-widevisibility• Betterinformationfordecision-making• Morepreciseproductplans• Fastermovingproductassortments• Improvedinventorymanagement• Minimizedlossfrommarkdownsandstock-outs• Improvedinformationsharing
Quantifiable BenefitsFamousFootwearachieveda6.3-percentincreaseinsales,a2.5-percentriseinsame-storesalesand11.2-percentjumpinoperatingearnings.
“JDA’s solutions help us to deliver the numbers we need to drive our company’s
growth . As our level of proficiency with the technology has improved, we’ve
been able to significantly enhance our planning and execution of assortments
as well as the placement of inventory. It’s a combination of the tools, internal
processes and experiences that we’ve had with JDA solutions that have helped us
deliver the results.”
- John Dembinski, vice president of merchandise planning
and allocation, Famous Footwear
Famous Footwear Leverages JDA Software Solutions to Increase Sales by 6.3%, Boost Same-Store Sales by 2.5% and Improve Operating Earnings by 11.2%
Case Study
ForFamousFootwear,the$1.2-billiondivisionofBrownShoeCompanyandatopretailerofname-brandshoesintheUnitedStates,makingsureregionalassortmentdifferences are accounted for is a daily challenge. With more than 800 stores and 120millioncustomerseachyear,FamousFootwear needed to find a more efficient and effective way to deliver a fresh and precise flow of new styles to each store. TheretailerimplementedseveralJDASoftwaresolutionstoreplacemanualprocesses and to sharpen its planning and allocation processes.
WithJDAsolutionsasthefoundation,along with new processes in place, Famous Footwear is seeing rapid results. Today planners and allocators have better informationfordecisionmaking,enhancedenterprise-widevisibilityandmorepreciseproduct plans. And, the company has achieved faster moving product assortments and enhanced inventory management. ShortlyafterimplementingtheJDAsolutions, Famous Footwear achieved a 6.3-percentincreaseinsales,a2.5-percentriseinsame-storesalesand11.2-percentjumpinoperatingearnings.
Shifting Market Data Demands Fast Response
Toreachitstargetmarketandcontinueits aggressive growth, Famous Footwear knewthatithadtocaptureandrespondto the variation and diversity that is driven by demographics, climate and region.Specifically,thechallengesforthecompany’splanningandallocationteamscenteredonthreekeyareas:
• Managethediversityofitsassortmentand products
• Matchtherightproductsandquantitiesto specific regions and target customers
• SupportthelatestsalestrendsJohnDembinski,vicepresidentofmerchandise planning and allocation for Famous Footwear, said the company first needed to better understand its customers so that it could deliver the right merchandise to the right place.
“Shoesarenotahigh-turnbusinessandasa result, our success depends on having the right assortments and sizes on the shelves whenourcustomerswalkintothestore,”Dembinskisaid.“Ourbiggestchallengewas how to plan and execute an assortment strategy that allowed us to turn inventory anddrivecontinuousfreshness.”
IfanyindustryisgoingtotestthelimitsofanITinfrastructure,it’sretail.Asthecompany analyzes demographics and different product mixes, new trends in marketdatamustbeenteredintothesystemquicklytorealizethebenefit—andstayaheadofthecompetition.BeforeturningtoJDA,FamousFootwearreliedoncumbersome, manual processes to manage planning and allocation.
“Inthepastweweredependentonspreadsheetsthatweretradedbackandforthbymanydifferentpeople.Itwasacoordinationnightmare,”saidTomHendricks,vicepresidentofretailinformationsystemsforBrownShoeCompany.“Wehadanin-houseallocation
system that used static models also based on spreadsheets. This was how we managed inventory levels at our stores. We soon recognized that the spreadsheet approach was too labor intensive and that the static modelapproachdidn’tdealwithdemandfluctuations in our stores. These were the keydriversforustotakealookatwhere wegonext.”
JDA Software Solutions: The Right Fit for Famous Footwear
Famous Footwear conducted a comprehensive vendor selection process and implementedthefirstcomponentofJDA’sEnterprisePlanningsolutionsthatsupportmerchandise planning. The company then quicklydeployedadditionalsolutionsoverthenextthreeyears.AccordingtoMaryThostenson,Arthur®systemsadministratorforFamousFootwear,JDA’sEnterprisePlanningimplementationapproachandthebest-of-breedsolutionsmadeitaperfectfit.
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“The other solution providers we considered weregearedtowardthesmaller,middle-tierenterprise and we were growing much too quickly,”Thostensonsaid.“ItwascleartousthatJDAfitthebill.”
With its planning and allocation processes poweredbyJDA,FamousFootwearhasseen a significant reduction in processing time—nomorespreadsheethandoffs—and improved planning at multiple levels of the retail hierarchy.
“The technology has enabled us to roll up aplanatthestartingpointofexecution,”Hendrickssaid.“WithJDA®Allocation weareabletokeeppacewiththeproductsthataresellingbestandmakesureappropriate inventory is allocated down to thestorelevel.”
“JDA’ssolutionshelpustodeliverthenumbersweneedtodriveourcompany’sgrowth,”Dembinskiexplained.“Asourlevel of proficiency with the technology has improved,we’vebeenabletosignificantlyenhance our planning and execution of assortments as well as the placement ofinventory.It’sacombinationofthesolutions, internal processes and experience thatwe’vehadwithJDAsolutionsthathavehelpedusdelivertheresults.”
Basedonitssuccessfulimplementationat Famous Footwear, the company has expandedthedeploymentofJDAsolutionsto support its specialty retail brands Naturalizer,F.X.LaSalleandViaSpigastores in North America, as well as its Shoes.come-commercedivision.
Looking to the Future
Lookingahead,FamousFootwearisconsideringotherJDAsolutionsthatwill provide new functionality for store clustering, advanced store and warehouse replenishment and revenue management.
“Today we have a robust planning and allocationinfrastructure,”Dembinskisaid.“We were able to achieve it by building a well-thoughtoutbusinessstrategy,takingabest-practiceapproachtodesigningourprocessesandsupportingbothwithJDA’sleadingsolutions.Intoday’sretailspaceyousimplywon’tgainoptimumbottom-lineresultswithoutallthree.”
About JDA Software Group, Inc.
JDA®SoftwareGroup,Inc.(NASDAQ:JDAS),TheSupplyChainCompany®,isthe leading provider of innovative supply chain management, merchandising and pricing excellence solutions worldwide. JDAempowersmorethan6,000companiesofallsizestomakeoptimaldecisionsthatimprove profitability and achieve real results in the discrete and process manufacturing, wholesale distribution, transportation, retail and services industries. With an integrated solutions offering that spans the entire supply chain from materials to theconsumer,JDAleveragesthepowerfulheritageandknowledgecapitalofacquiredmarketleadersincludingi2Technologies®,Manugistics®,E3®,Intactix®andArthur®.JDA’smultipleserviceoptionsprovidecustomers with flexible configurations, rapid time-to-value,lowertotalcostofownershipand24/7functionalandtechnicalsupportand expertise. To learn more, visit [email protected].
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